TREATMENT IN GST-CUTOMS-RBI

[VIVEK DESHPANDE]

We are the manufacturer of heavy vehicle/off the road vehicles Products/Parts. We are supplying the parts to overseas customers also. We do manufacture Fixtures or Dies also.

For the manufacturing the products/parts we have to develop some fixtures/dies and we have to reimburse the cost of the the same form our customers. In some cases we raise Tax Invoice and keep the Die/Fixture as loan material or in some cases customers gives us rates in our Parts/Products by apportioning the development cost.

But some overseas customers wants an Invoice for the fixture manufactured and keep in our factory premise as a loan material. After the completion of use or life of the said fixture they want back the Fixture since it was given on Loan Basis.

Now we have below queries:

1.How to raise Tax Invoice since place of supply will be our factory address where such Die/Fixture will be kept.Actual movement of goods will not takes place. (No E-way bill also)

2.Since no movement of goods, shipping bill etc will not be generated.

3.Remittances will be received in foreign Currency, how to settle this remittances with bank. Bank need Purpose code to settle the same.

4.After useful life of the Die/Fixture or at any time if Customer wants Die/Fixture back in their premise (in the address of their overseas factory) how the same can be cleared from Customs.

AI Summary

Manufacturer Seeks Guidance on GST, Customs for Dies Supplied Overseas; Considers Amortizing Costs and GR Waiver Options A manufacturer of heavy vehicle parts is seeking guidance on handling GST and customs issues related to fixtures and dies supplied to overseas customers. They face challenges in invoicing and tax implications since the goods remain in India as loan materials. Queries include raising tax invoices without physical movement, handling foreign currency remittances, and customs clearance when returning dies to customers. A respondent suggests not charging separately for the dies but amortizing costs into the product value, treating upfront payments as advances for exports, and considering a GR waiver for exporting dies post-contract.